KJTS Expands Energy-Efficient Cooling Capabilities with Strategic Acquisition of Malakoff Utilities

KUALA LUMPUR, 03 FEBRUARY 2025 – KJTS Group Berhad (“KJTS” or the “Company”), a leading provider of energy-efficient cooling solutions and building support services, today announced the proposed acquisition of Malakoff Utilities Sdn Bhd (“MUSB”), a wholly-owned subsidiary of Malakoff Corporation Berhad, for a total cash consideration of approximately RM65.50 million.

This acquisition, executed through KJ Technical Services Sdn Bhd, a wholly-owned subsidiary of KJTS, will see MUSB become an indirect wholly-owned subsidiary of KJTS upon completion. The proposed acquisition is in line with KJTS’s strategy to expand its cooling energy management business, strengthen its market presence, and enhance operational efficiencies.

MUSB owns and operates a large-scale cooling system that supplies chilled water for air-conditioning to 10 major buildings within Kuala Lumpur Sentral (“KL Sentral”), one of Malaysia’s most prominent commercial and transit hubs. The acquisition provides KJTS with an immediate opportunity to scale up its cooling operations, leveraging its expertise in energy-efficient cooling solutions to enhance MUSB’s performance, optimise cost structures, and drive long-term growth.

In conjunction with this acquisition, KJTS is also proposing a variation in the utilisation of its initial public offering (“IPO”) proceeds. The reallocation of approximately RM44.42 million from the IPO funds will partially finance the acquisition, reflecting the company’s commitment to strategic expansion while maintaining prudent financial management. The balance of the purchase consideration will be funded through internally generated funds and/or bank borrowings. Given KJTS’s strong financial position and disciplined approach to capital management, the management does not foresee any equity fund-raising in the near future.

Chairperson of KJTS, Puan Azura said, “The acquisition of MUSB marks a significant milestone in KJTS’s growth, strengthening our position in the cooling energy management sector. By integrating MUSB’s large-scale cooling operations with our expertise, we will drive greater efficiency, lower costs, and enhance energy performance at scale.”

She further added, “This transaction will significantly increase KJTS’s total revenue and broaden our service capabilities. We are confident in unlocking greater efficiencies and long-term value, reinforcing our commitment to sustainable and high-performance cooling solutions.”

The proposed acquisition marks a strategic step for KJTS, expanding its cooling energy operations by integrating MUSB’s large-scale infrastructure. This move strengthens the Group’s ability to deliver energy-efficient solutions, particularly in district cooling and standalone systems.

With MUSB’s 2023 revenue of RM172.4 million, the acquisition is set to significantly boost KJTS’s topline, reinforcing its position in Malaysia’s cooling energy sector. Beyond financial gains, KJTS will leverage its expertise in cooling system optimisation and energy management to enhance efficiency, lower operating costs, and reduce energy consumption across MUSB’s facilities.

This acquisition also provides immediate access to KL Sentral, a key commercial hub, accelerating KJTS’s market expansion and opening doors for long-term contract opportunities. Furthermore, it aligns with Malaysia’s energy transition agenda, reinforcing KJTS’s commitment to sustainability by integrating environmentally friendly cooling solutions that contribute to lower carbon emissions.

The growing demand for energy-efficient cooling solutions, driven by increasing urbanisation, rising energy costs, and stricter sustainability regulations, presents a significant opportunity for KJTS. By acquiring MUSB, KJTS will enhance its operational scale while leveraging its technical expertise to improve system efficiencies, optimise cost structures, and drive stronger financial performance.

With KL Sentral serving as a model for sustainable urban development, KJTS plans to implement efficiency-driven enhancements across MUSB’s cooling systems, setting new benchmarks for energy-efficient cooling solutions in commercial developments. The company also sees potential for further expansion into high-demand urban hubs, replicating its energy optimisation model across new and existing projects.